+
Niti Aayog Virmani promotes Chinese investment in Indian manufacturing
ECONOMY & POLICY

Niti Aayog Virmani promotes Chinese investment in Indian manufacturing

Arvind Virmani, a member of Niti Aayog, suggested that India should encourage Chinese firms to invest and manufacture goods locally rather than continuing to import them. His comments followed a pitch from the pre-budget Economic Survey on July 22, which proposed attracting foreign direct investment (FDI) from China to boost local manufacturing and enhance the export market.

Virmani explained that if India is going to import goods from China for the next decade or more, it would be more beneficial to have Chinese companies establish operations in India and produce these goods domestically. This strategy, he noted, would align with the broader economic trade-offs.

With the US and Europe moving away from sourcing directly from China, Virmani argued that having Chinese companies invest in India could help the country tap into these markets more effectively. The Economic Survey emphasised that focusing on FDI rather than solely relying on trade could be a promising approach for boosting India?s exports, similar to strategies used by East Asian economies.

China is currently India's largest trading partner, with bilateral trade amounting to $118.4 billion in the fiscal year 2023-24. However, India has seen minimal FDI from China, which holds only a 0.37% share of the total FDI inflow. Tensions between the two nations, particularly after the Galwan Valley clash in June 2020, have impacted their economic relations. Despite these tensions, trade has continued to grow, with India's exports to China rising by 8.7% to $16.67 billion last fiscal year, while imports increased to $101.7 billion, widening the trade deficit to $85 billion.

Virmani believes that focusing on Chinese investment could be more advantageous for India than relying on imports, helping the country to better integrate into global supply chains and reduce its trade deficit.

(ET)

Arvind Virmani, a member of Niti Aayog, suggested that India should encourage Chinese firms to invest and manufacture goods locally rather than continuing to import them. His comments followed a pitch from the pre-budget Economic Survey on July 22, which proposed attracting foreign direct investment (FDI) from China to boost local manufacturing and enhance the export market. Virmani explained that if India is going to import goods from China for the next decade or more, it would be more beneficial to have Chinese companies establish operations in India and produce these goods domestically. This strategy, he noted, would align with the broader economic trade-offs. With the US and Europe moving away from sourcing directly from China, Virmani argued that having Chinese companies invest in India could help the country tap into these markets more effectively. The Economic Survey emphasised that focusing on FDI rather than solely relying on trade could be a promising approach for boosting India?s exports, similar to strategies used by East Asian economies. China is currently India's largest trading partner, with bilateral trade amounting to $118.4 billion in the fiscal year 2023-24. However, India has seen minimal FDI from China, which holds only a 0.37% share of the total FDI inflow. Tensions between the two nations, particularly after the Galwan Valley clash in June 2020, have impacted their economic relations. Despite these tensions, trade has continued to grow, with India's exports to China rising by 8.7% to $16.67 billion last fiscal year, while imports increased to $101.7 billion, widening the trade deficit to $85 billion. Virmani believes that focusing on Chinese investment could be more advantageous for India than relying on imports, helping the country to better integrate into global supply chains and reduce its trade deficit. (ET)

Next Story
Building Material

Viva ACP Launches Experience Centre in Nashik

Viva ACP, one of Asia’s leading manufacturers of Metal Composite Panels (MCP), has unveiled a new state-of-the-art Experience Centre in Nashik. Situated at Plot No. 10, Kathe Industrial Estate, Tigrania Road, Dwarka, the centre aims to make Viva’s premium cladding solutions more accessible to architects, developers, and design professionals in Western India. The centre was formally inaugurated by Prakash Jain, Chairman and Managing Director, Viva Composite Panel, along with Nitin Jain and Mayank Jain, Directors at the company. Conceptualised as an interactive and immersive space,..

Next Story
Technology

Hikrobot Launches HDMI Video Micro System in India

India, July 2025: Hikrobot has introduced its HDMI Video Micro System in the Indian market, offering a plug-and-play imaging solution that combines 2K high-definition clarity, real-time streaming, and portability. The system is designed for professionals in sectors such as industrial inspection, medical research, forensic science, education, and precision manufacturing. Unlike traditional imaging setups that require external PCs and complex software, the Hikrobot HDMI Video Micro System provides direct output to an HDMI display, eliminating setup complications and improving usability.&nbs..

Next Story
Real Estate

Stone Wood Hotels Appoints Shishir Kumar Jena as CFO

Stone Wood Hotels & Resorts has announced the appointment of Shishir Kumar Jena as Chief Financial Officer. This key leadership move aligns with the boutique hospitality group’s ongoing national expansion. Shishir Kumar Jena brings over 32 years of experience in hospitality finance, having held senior positions with renowned brands such as Acron, Radisson, and Fortune Inn Exotica. His expertise spans financial strategy, operational efficiency, revenue optimisation, and aligning financial performance with guest satisfaction. Throughout his career, Jena has maintained a consisten..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?